KKR to sell real estate portfolio to Oxford Properties for $2.2bn

The portfolio consists of 149 high-quality distribution buildings located across 12 major industrial US markets, including the Inland Empire, Dallas, Atlanta, Phoenix, Chicago, Houston, Tampa, Orlando, San Diego and the Baltimore Washington corridor.

The deal is expected to close in the coming months.

Roger Morales, Partner and Head of Real Estate Acquisitions, said: "Four years ago, we set out to create a large stabilised portfolio that would benefit from secular changes in the logistics sector largely driven by e-commerce and consumer preference changes.

"Given the highly fragmented asset class, the strategy included the creation of a best-in-class operating platform and a targeted investment effort focused on growing cities and key distribution nodes in the US.

"Today’s transaction not only demonstrates how this strategy is performing for our investors, but also reflects the tremendous market opportunity we continue to see in industrial real estate."

Following completion of the portfolio sale, KKR said it will continue to own more than 20m square feet of industrial property across major metropolitan areas in the US.